Attention Economy


Monday, December 19, 2016

Uncertainty and Business Investment

Policy uncertainty discourages innovation and hurts the environment by Lucas Davis
http://theconversation.com/policy-uncertainty-discourages-innovation-and-hurts-the-environment-70261
“When there is uncertainty, there is “option value” to delaying irreversible investments. In other words, it is often better to wait and see what happens, rather than to make a costly mistake. R&D investments are particularly affected by uncertainty, because the return on these investments is sensitive to what happens with policy.”